As creditors and finance ministers weigh Greece’s latest offer, POLITICO’s Transatlantic Caucus believes Europe should act to relieve Athens’ debt burden despite frustration with Prime Minister Alexis Tsipras, who is seen as largely to blame for the crisis.’

The majority view: While Europe would probably survive without Greece, keeping Athens in the eurozone remains a top priority because a “Grexit” could carry far-reaching consequences for the European project.

And while Tsipras and his left-wing government are seen as bearing the most responsibility for inflaming the crisis, the survey holds other leaders accountable as well. German Chancellor Angela Merkel deserves some blame, as well as the troika of creditors that imposed tough austerity measures in exchange for financial aid and sent Greece into a downward economic spiral.

As Europe digests Greece’s last-chance proposals on a reforms-for-cash bailout deal, the focus is squarely on whether creditors can accept Athens’ core demand: easing a €323 billion debt burden to allow the country to get back on its feet.

Germany remains the chief opponent to any restructuring of Greek debt. While Finance Minister Wolfgang Schäuble said Thursday that some easing of the burden was probably necessary, he also said it was illegal under current EU statutes, and offered no way around the obstacle.

POLITICO’s caucus showed greater flexibility on the issue. A clear majority of respondents — 74, versus 44 against — said it was time for Europe to restructure Greece’s debt, and an even greater majority said Athens needed to stay in the eurozone.

“Any union, in order to be sustainable, needs to be crisis resistant,” said one respondent from central Asia. “The current situation with Greece, therefore, is not only a challenge but also an opportunity for the EU if handled well.”

However, support for Greece does not translate into support for Tsipras and his Syriza government. Far more respondents — 51 — blamed him for bringing the Greek crisis to its current fever pitch than the nine who pointed the finger at Merkel. A bigger group of 21 respondents said everyone from the Greek government to EU leaders, the International Monetary Fund and the European Central Bank bore responsibility for the mess, while a smaller group of four said it was all the fault of the “troika”.

“Tsipras and the political groups supporting him have deepened it (the crisis) to the extreme and made it harder for eurozone leaders to have forthcoming reactions,” said a respondent from eastern Europe. “If their strategy fails, they will be responsible for it in the history books.”

Another respondent from southern Europe said: “It’s all relative, but Merkel should have taken a different route in 2010,” referring to the beginning of Europe’s sovereign debt crisis in which Germany first first opposed a private-sector haircut for Greece, then the European Central Bank’s policy of unconditional support for the euro.

French President François Hollande has called the latest Greek proposals “serious and credible” and Paris helped to craft the offer. But some senior German lawmakers have already spoken out to express their skepticism about the plan, which they don’t believe Greece will implement.

And Germany could be the key. If the creditors approve, Greece still faces the risk that national parliaments — notably Germany’s — will reject it, raising the prospect of a disorderly Greek exit from the euro zone.

While that isn’t the desired outcome, a large majority of respondents, 78, said that the EU would survive without Greece. “A small storm like that will not affect an ocean liner,” said one Baltic respondent.

Roughly 25 percent of respondents said Grexit would jeopardize the bloc’s future. One pointed to the risk of “political contagion,”or the idea that other European states might get the idea of following in Athens’ footsteps and defying the EU over the terms of their debts.

Among respondents who feared the consequences of a Greek exit, the main risk cited was an unraveling of EU membership, with more states demanding to peel away from the core group.

“For the first time, we risk not abiding by one of the core treaty principles: ‘an ever closer Union’,” said one German respondent. “Grexit could start disintegration, followed by ‘Brexit’. This would put the project in real danger.”

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Lise M. Nielsen

Greece is not a thrustworthy partner, apparently Greeks don’t understand they have spent too much money. They promise reforms and never do anything. The EU should help them to an orderly exit. Realize that the debt will never be paid back and stop throwing good money after bad money.

Posted on 7/10/15 | 10:58 PM CEST

Stevemid

Subordinating the “old” Greek debt to newly issued bonds on the open market would be one way to hide the haircut. Another would be to suspend payments on a percentage of the old debt so that the sum of all debt repayment is something Greece can afford and allows room for stimulus.

Posted on 7/10/15 | 11:06 PM CEST

ExLiberal

“Insiders” want to give Greece more money? Money that the Greeks will spend and never pay back?
Fine.
Let’s see the “Insiders’ put up THEIR OWN money for this!

Posted on 7/10/15 | 11:43 PM CEST

The Economist

Actually Greece has not been servicing any debts for years, so the issue of debt relief does not affect their finances today, but rather in the very distant future. They still not to reform themselves for their own benefit.

Posted on 7/11/15 | 9:58 AM CEST

Maximilian Meyer

There is only one comment: “fu…. Tsipras and the communist behind him!” Who on earth seriosly request Germany to waste further money in order to”save” Greece??
Germany already spend 2 trillion euro to rebuilt the ruined communist Eastern Germany and will need to spend another 1-1,2 trillion additionally in the upcoming 15yers. Greece is not really a consolidated state it is some kind of consumption organism only viable if some stupids nourish it.

Posted on 7/11/15 | 12:48 PM CEST

Marcel

No, Maximilian, what you should be saying is “F*** the neoliberals imposing austerity on the poor, to pay for bailouts and tax breaks for the rich”

The bailouts aren’t for Greece, but for insolvent French and German banks. This is the third time in a century that the Germans attempt to rule all of Europe, last two times with violence, didn’t work. Now they try with economic means to turn Europe into a German/corporate/banker dictatorship where governments aren’t allowed to do what Germany doesn’t approve of. Shameful!

The sooner we are rid of the Euro, the better.

Posted on 7/11/15 | 4:06 PM CEST

Rune Gent

Greece has borrowed the money and needs to pay it back. Greece has put itself in its current position and it and its people needs to take responsibilty and stop asking the taxpayers in other (and poorer!) countries to pay its bills.

Posted on 7/11/15 | 5:03 PM CEST

Maximilian

Marcel, sorry but from the “last” 325 billion euros: One-third of this money has served to finance the Greek current account deficit, one-third to repay foreign credit, and one-third for the outright capital flight of Greek citizens and institutions (source: IFO institute).
Buy the way, regarding “the banks”: the lions share went to French banks.., obviously not enough.., so the French government is alread heavily involved to “save Greece”

Posted on 7/11/15 | 6:15 PM CEST

hari naidu

Whatever way you want to slice it – debt haircut is legally forbidden under the Treaty! If they wish to relief economic policy constraints on Athens, they may consider prolonging long term repayment terms and conditions. That’s it.

Posted on 7/11/15 | 6:24 PM CEST

someonr

Debt forgiveness leads to further Greek profligacy. The economic takers will win once again, while the press blames the creditors for being so late to take a haircut. Assuming forgiveness is granted, ECB, IMF etc. should put up a “No Greeks welcome till 2050” sign in their window.

Posted on 7/12/15 | 12:58 AM CEST

Charlie-Papa

Clearly Germans are trying to impose a 4th Reich in Europe whc wl agn lead on a turmoil and conflict btwn European countries and not only.. Germany shud be quickly isolated… again

Posted on 7/12/15 | 8:14 PM CEST

Rudolf Charel

The reduction of the total debt has already been promised, but not now. Maybe when trust has been established between the Euro Group and Greece.